Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/119190 
Year of Publication: 
2010
Series/Report no.: 
50th Congress of the European Regional Science Association: "Sustainable Regional Growth and Development in the Creative Knowledge Economy", 19-23 August 2010, Jönköping, Sweden
Publisher: 
European Regional Science Association (ERSA), Louvain-la-Neuve
Abstract: 
This paper investigates the impact of new firms' quality on the magnitude of their employment effects. Our results clearly show that the quality of start-ups, measured by their affiliation to sectors and innovative industries, strongly influences the direct and the overall employment contribution of new firms. In particular, start-ups in manufacturing industries generate larger direct and overall growth effects than those in services. Moreover, new businesses in innovative manufacturing and in knowledge-intensive service industries make a larger direct contribution to employment than start-ups affiliated to other industries. We also find a relatively strong overall effect of new business formation in knowledge-intensive service industries. The impact of start-ups in innovative manufacturing industries on overall regional employment growth is, however, not statistically significant what may be mainly a result of their rather small share in all start-ups and due to the fact that they impact more on firms in other regions than start-ups in non-innovative manufacturing. Finally, we discuss conclusions for entrepreneurship policy, which can be derived from our findings.
Subjects: 
Entrepreneurship
new business formation
innovative industries
regional development
entrepreneurship policy
JEL: 
L26
M13
O1
O18
R11
Document Type: 
Conference Paper

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